KUALA LUMPUR — April 21, 2015: Work on the world’s first floating liquefied natural gas (LNG) facility by Petronas is now 91 per cent complete and on schedule.
It is expected to be fully ready by the first quarter next year and ready to produce 1.2 million tonnes of gas yearly beginning March 2016.
Vice-president and venture director (LNG projects – domestic) Datuk Abdullah Karim said Petronas plans to sail the gas around February next year and it will take a month to commission.
“So far we do not have any fix buyers but we are targeting customers in South Korea, Japan, Taiwan and those here,” he told a media briefing here today.
The national oil and gas company is positioning itself to be a leading LNG power player through its venture into commercial floating facility.
PFLNG1 will make possible the liquefaction, production and offloading of LNG at 180 kilometres offshore Bintulu in Sarawak.
Petronas will from now test all the piping and cables at the facility.
“The last part is the hardest as we need to integrate all the cables, which are about 2,000 km. This will take about nine months,” he said.
On the company’s expectation on the return on investment, Abdullah said Petronas was cautiously optimistic on the LNG market, which is currently traded at US$65 per tonne.
“Although it’s a bit conservative, we have a long-term projection and with that US$65 price per tonne it is viable for Petronas.
“We expect to achieve double-digit revenue for the whole development of the gas field,” he said.
PFLNG 1 is designed to operate in shallow waters. — Bernama